AUD/USD: Strong rebound to be challenged at the pivotal 0.6664/6706 zone – Credit Suisse

The rebound in AUD/USD has turned out to be stronger than analysts at Credit Suisse initially expected, but has come to a halt well below the 200-day average and 78.6% retracement at 0.6664/6706 which is expected to cap. Commerzbank’s Karen Jones also sees the Aussie struggling at that level. 

Key quotes

“We ideally look for the pivotal 0.6664/6706 zone area to continue to cap and post a correction, we look for the downtrend to resume.”

“Key near-term support is seen at 0.6373, removal of which would see a small ‘triple top’ complete with next support at 0.6254, ahead of a move back to the early April lows at 0.5990/80.”

“Above 0.6706 on a closing basis would end the core bear view, with resistance seen next at 0.6745/50.”